Detectives are probing about N117 billion suspicious transactions by the government of Rivers State in the last three years.
The huge cash was intermittently withdrawn over the counter by a state official designated for the purpose, Economic and Financial Crimes Commission (EFCC) sources said at the weekend.
There were indications that the withdrawals from the state accounts were laundered by some state officials.
The state government Sunday described the probe as a “political witch-hunt” and vowed not to be intimidated.
Four suspects have been shortlisted for interrogation in connection with the massive withdrawals. They include an official in charge of Finance and Accounts at the Government House in Port Harcourt and a cashier.
The EFCC has detained a bank’s Managing Director (MD), who admitted that N5.2billion was realised as charges for the “controversial” transactions.
According to the sources, the withdrawals were made in tranches of N10 million with as many as 50 cheques cashed in a day.
The sources said it was a case of “gross violation” of the Money Laundering (Prohibition) Act of 2011.
One of the sources said: “Based on intelligence report, the EFCC swung into action.
Our findings indicated that the withdrawals were made in cash from the state accounts mostly by one person. There are no records of what the cash was used for. We are working on clues that it was diverted.
“The EFCC team has obtained all the records of the withdrawals, including date and time. For instance, on June 8, 2015 barely few days in government, about 45 cheques amounting to N450 million were cashed over the counter for no justifiable purpose.
“Also, on June 9, 2015 about 50 cheques amounting to N500 million were withdrawn. We will soon release the details of findings by our team.”
Another source spoke of how a bank chief was quizzed last Thursday and released on administrative bail.
“But he was asked to come back on Friday and we have been interacting with him up till Sunday. He admitted that all the withdrawals were made over the counter in cash.
“He also said the bank benefited about N5.2billion from the charges collected on the transactions,” the source said.
Another source said the bank was guilty of “lack of Suspicious Transaction Report(STR)” and violation of Money Laundering (Prohibition) Act 2011, especially sections on special surveillance on certain transactions and Limitation to make or accept cash payment.
However, the Rivers State Governor, Nyesom Wike, has declared that no official of the Rivers State Government will appear before the EFCC over what he called politically-motivated investigations until the commission approached the Court of Appeal to set aside the 2007 judgment barring the commission from investigating the state.
A statement on Sunday signed by the Special Assistant to the Rivers State Governor on Electronic Media, Simeon Nwakaudu, quoted Governor Wike as describing the alleged action of the EFCC as a political witch-hunt.
“We are not afraid of their probe and they have no power to probe us. No government official will appear before the EFCC until they set aside the court judgment of Rivers State Government against them in 2007. We cannot be intimidated.
“They filed for leave to appeal the judgment at the Court of Appeal. Until they set aside the judgment, we will not come,” Wike insisted.
The governor pointed out that the media trial by the EFCC would amount to nothing, adding that the state government was aware of the move before it even started.
“We are aware of their tricks. They should not bother engaging in media trial because it will not work. This is a mere political witch-hunt. They must obey the rule of law. We have filed another action against the EFCC.
“Because they have been served, they are telling the Press that they have started investigating Rivers State Government. This media war by the EFCC will not work. We stand on the rule of law,” Wike added.
The statement, however, recalled that he had said that the recent freezing of Akwa Ibom and Benue states accounts by the anti-graft agency was targeted at Rivers State and added that the EFCC had already been detailed to carry out “very unconstitutional activities.”
Wike said, “There is no worse impunity than for the EFCC to shut down a tier of government through the freezing of the accounts of two state governments.
“An agency of Federal Government had frozen the accounts of Akwa Ibom and Benue State Governments. This is the worst coup against the constitution and the law-abiding people of those states.
“But the target is not Benue or Akwa Ibom states. The real target is Rivers State. The EFCC as a federal agency has no business with state funds. That is the responsibility of the state House of Assembly.”